The Dow Jones Industrial Average closed 0.11% higher at 16,530.55, while the S&P 500 increased 0.19% to 1,884.66. The Nasdaq added 0.34% to finish at 4,138.06.

4. -- U.S. prosecutors were close to securing a guilty plea and a settlement of more than $1 billion from Credit Suisse over allegations the bank helped wealthy Americans evade taxes, The Wall Street Journal reported, citing people familiar with the discussions.

The Justice Department has been pushing Credit Suisse to plead guilty to a crime and U.S. officials have become more confident they can get such an agreement from the bank in the coming days, the people told the newspaper. A spokesman for Credit Suisse declined to comment for the Journal.

Credit Suisse shares rose 0.1% in premarket trading.

5. -- Merck reached a deal to sell its consumer care business for $14.2 billion to Germany's Bayer.

The sale is expected to close in the second half of the year.

Merck said Tuesday it expects after-tax proceeds from the sale of the division of $8 billion to $9 billion.

Merck shares rose 0.6% in premarket trading to $59.

6. -- Walt Disney is expected by analysts on Tuesday to report fiscal second-quarter profit of 96 cents a share on revenue of $11.24 billion.

7. -- American International Group reported a 27% decline in first-quarter net income because of higher catastrophe losses and lower investment income.

Earnings were $1.61 billion, or $1.09 a share, down from $2.21 billion, or $1.49 a share, a year earlier.

Its after-tax operating income, which excludes realized capital gains and losses among other items, fell to $1.21 a share; analysts were looking for $1.07 a share.

The stock fell 2.5% in premarket trading to $51.40. 8. -- Wall Street expects daily deals site Groupon to report a first-quarter loss of 3 cents a share on revenue of $738.4 million.

"The continued absence of sustained and credible improvements to unresolved issues in Europe, continuing U.S. fiscal and monetary policy issues, geopolitical instability and the mixed outlook for global growth would make improvements in prevailing market conditions unlikely," the bank said.